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Taxation and Customs Union

Excise Duties: Energy Tax Proposal

In 2011, the Commission presented a proposal to revise the Energy Tax Directive.

The aim of the proposal was to modernise EU rules on energy taxation. It seeks to restructure the taxation of energy products, in order to remove current imbalances and distortions, and support the EU's wider environmental and energy goals.

A key feature of the proposal is to tax energy in a way that reflects both its CO2 emissions and its energy content. Energy taxes would be split into these two components to determine the overall rate at which the fuel is taxed.

The proposal also makes a distinction between sectors covered by the EU ETS and those that are not, to avoid double taxation.

The European Parliament voted on the proposal on 19 April 2012. See: MEMO/12/262

Following the unsuccessful negotiations between the EU Member States in the Council, the proposal was withdrawn by the Commission in 2015.

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